As the economy enters a recession, Democrats are targeting American manufacturers with their new corporate minimum tax, included as part of the Manchin-Biden Build Back Better tax hike bill.
READ: Studies: Schumer-Manchin Deal Hits U.S. Manufacturers and Worsens Inflation
Nearly half of the revenue raised from these tax increases will come from already struggling American manufacturers. As reported by the Wall Street Journal:
“Manufacturers and other companies making capital investments could pay the bulk of the new corporate minimum tax in Senate Democrats’ fast-moving fiscal legislation, according to an analysis of the plan.”
“An analysis from the Tax Foundation, which favors simpler tax systems with lower rates, found that the coal, automobile and utilities industries would face larger tax bills.”
These factories have also struggled through President Biden’s labor shortage: A year and a half into the Biden Administration, America is still 524,000 jobs short of the jobs we had prior to the pandemic.
- Main street businesses face a record labor shortage with over 10 million job openings for nearly a year while small businesses lost jobs three out of the last four months.
Further, the corporate minimum tax enables Democrats to claim they’re making corporations “pay their fair share,” while actually inflicting pain on working Americans.
“Rhetorically, the corporate minimum tax works as a way to address complaints from President Biden and progressive groups that large, profitable companies such as Amazon.com Inc. can report very low tax bills.”
At a time when Americans are already struggling with record-high prices, now is not the time to raise taxes that will further burden working families with higher prices, fewer jobs, and lower wages.
READ: WSJ: Schumer-Manchin Deal is a Tax Increase on Every American
KEY BACKGROUND:
The cost of new tax increases in Democrats’ revived reckless tax-and-spend bill would be borne by U.S. manufacturers and land on Americans in worsened inflation.
- The analysis comes from the nonpartisan Joint Committee on Taxation (JCT) and was requested by Senate Finance Committee Republican Leader Mike Crapo (R-ID).
- From Senate Finance Committee Republicans: “Democrats claim the book minimum tax is a tax loophole closer, when in reality it is a tax on U.S. manufacturers. Based on the new JCT analysis, 49.7 percent of the tax would be borne by the manufacturing industry at a time when manufacturers are already struggling with inflation, supply-chain disruptions, and an impending recession.”
Democrats’ Made-in-America minimum book tax hikes will land on American businesses and workers in slashed wages.
- Democrats claim they’re only targeting “large corporations,” with the minimum book tax, but the burden of these tax increases will be carried by working families in higher prices, fewer jobs, and lower wages.
- About 200 large companies will be caught in this tax, and many of them would actually pay some of this tax each year.
- The JCT also found that 25 percent of the cost of Democrats’ tax hikes would be paid for by workers in slashed wages.
- The Tax Foundation also warns that the biggest burden of the book minimum tax will be carried by American coal industries, facing a 7.2 percent tax hike, followed by automobile and truck manufacturing, facing a 5.1 percent tax hike.
- Congressional Democrats’ CHIPS plus bill provides $76 billion in corporate subsidies and carve outs to politically connected corporations, who will be exempt from tax increases, greater IRS audits, and inflationary spending that will harm families and small businesses.
READ: What They’re Saying: Schumer-Manchin Deal Worsens Inflation, Kills Jobs, Hikes Taxes on Americans